Software maker CA Technologies, Long Island's largest company by stock market value, Tuesday reported 8 percent lower earnings for its third fiscal quarter versus a year earlier, on lower revenues.
The company, which is based in Islandia and sells mainframe, security and other software to large corporations, said net income in the three months ended Dec. 31 fell to $232 million. Per-share net income fell 7 percent to 51 cents. That result beat the estimates of a panel of analysts surveyed by Bloomberg News, who had forecast earnings per share of 45 cents.
The company's revenues in the quarter, $1.163 billion, were down 3 percent from a year earlier but those, too, beat analysts estimates of $1.133 billion.
The company said revenues in Enterprise Solutions fell the most of any segment, declining 6 percent to $447 million, although operating profit in that segment rose. Revenues for its largest business segment, Mainframe Solutions, were flat with last year's quarter at $622 million, but operating margin rose by 3 percentage points to 62 percent on lower selling and marketing expenses.
Michael P. Gregoire, CA Technologies' chief executive, called the quarterly results "another solid performance."
He joined CA a year ago, arriving from Silicon Valley, and has been trying to breathe new life into the LI tech giant by emphasizing cloud-based computing and other cutting-edge programs outside of its core mainframe software. Investors have largely welcomed the move, and CA's stock has climbed more than 50 percent since he arrived, recently hitting $34.61, its highest price since 2002. Shares fell 17 cents Tuesday to $34.26.
As of May, CA had about 1,525 employees on Long Island and close to 14,000 worldwide.With Joe Ryan